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Industria De Diseno Textil, S.A. Unsponsored Adr (IDEXY)
:IDEXY
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Industria de Diseno Textil
(OTC:IDEXY)
74Outperform
Industria de Diseno Textil (IDEXY) vs. S&P 500 (SPY)
Market Cap
$156.48B
Dividend Yield2.31%
Average Volume (3M)673.23K
Price to Earnings (P/E)24.8
Beta (1Y)1.14
Revenue Growth6.78%
EPS Growth8.62%
CountryUS
Employees67,195
SectorConsumer Cyclical
Sector Strength49
IndustryApparel - Retail
Share Statistics
EPS (TTM)1.01
Shares Outstanding6,233,304,000
10 Day Avg. Volume1,377,765
30 Day Avg. Volume673,231
Financial Highlights & Ratios
PEG Ratio2.88
Price to Book (P/B)N/A
Price to Sales (P/S)3.10
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
Industria de Diseno Textil Business Overview & Revenue Model
Company DescriptionIndustria de Diseno Textil, S.A. (IDEXY), commonly known as Inditex, is a leading global fashion retailer headquartered in Spain. The company operates a diverse range of brands, including Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Uterque, and Zara Home, catering to various fashion segments from casual wear to home decor. Inditex is renowned for its fast fashion model, allowing it to quickly respond to market trends and consumer demands across its extensive network of physical stores and online platforms globally.
How the Company Makes MoneyInditex generates revenue primarily through the sale of clothing, footwear, accessories, and home decor products via its network of over 6,000 retail stores and e-commerce platforms worldwide. The company's fast fashion business model enables it to rapidly design, produce, and distribute new fashion items, thereby maintaining a competitive advantage in the market. Key revenue streams include direct sales to consumers in physical stores and online, with a significant portion of earnings coming from its flagship brand, Zara. Inditex also benefits from its strategic location of production facilities and close relationships with suppliers, allowing cost efficiencies and swift turnaround times. Additionally, the company leverages its global presence to optimize market opportunities in various regions, contributing to its robust financial performance.
Industria de Diseno Textil Financial Statement Overview
Summary
Industria de Diseno Textil shows strong financial performance across the board. The income statement highlights impressive revenue growth and robust profit margins, while the balance sheet shows a stable financial position with low debt and strong equity. Cash flow generation is solid, although there is some volatility in free cash flow growth. Overall, the company is financially well-positioned with only minor concerns over cash flow fluctuations.Income Statement
Industria de Diseno Textil shows a strong financial performance with impressive revenue growth rates and healthy profit margins. The gross profit margin and net profit margin have been consistently robust, highlighting effective cost management and profitability. The EBIT and EBITDA margins further underscore operational efficiency and a solid profitability trajectory.87
Very Positive
Balance Sheet
The company's balance sheet reflects a stable financial position with a very low debt-to-equity ratio, demonstrating prudent financial leverage. The return on equity is strong, showing effective use of shareholder funds. The equity ratio indicates a healthy proportion of equity in the capital structure, reducing financial risk.82
Very Positive
Cash Flow
Cash flow analysis shows a positive trend with consistent free cash flow generation, supporting future growth and investment. The operating cash flow to net income ratio indicates efficient cash conversion from profits. However, the free cash flow growth rate has shown volatility, which could indicate potential fluctuations in future cash availability.78
Positive
| Breakdown | |||||
| TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 37.16B | 38.63B | 35.95B | 32.57B | 27.72B | 20.40B | Gross Profit |
| 19.96B | 22.34B | 17.86B | 18.56B | 15.81B | 11.39B | EBIT |
| 7.22B | 7.55B | 7.01B | 5.52B | 4.28B | 1.51B | EBITDA |
| 10.36B | 11.10B | 9.97B | 8.22B | 7.10B | 4.24B | Net Income Common Stockholders |
| 5.64B | 5.87B | 5.38B | 4.13B | 3.24B | 1.11B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.49B | 11.50B | 11.42B | 10.08B | 9.39B | 7.57B | Total Assets |
| 34.09B | 34.71B | 32.73B | 29.98B | 28.95B | 26.42B | Total Debt |
| 5.49B | 7.13M | 5.74B | 5.60B | 6.01B | 6.35B | Net Debt |
| -2.45B | -6.38B | -1.27B | 35.00M | -1.01B | -1.05B | Total Liabilities |
| 16.70B | 15.04B | 14.06B | 12.95B | 13.19B | 11.87B | Stockholders Equity |
| 17.36B | 19.68B | 18.64B | 17.01B | 15.73B | 14.52B |
| Cash Flow | Free Cash Flow | ||||
| 1.48B | 6.62B | 6.80B | 5.26B | 5.63B | 2.31B | Operating Cash Flow |
| 1.48B | 9.29B | 8.67B | 6.67B | 6.75B | 3.02B | Investing Cash Flow |
| 0.00 | -3.29B | -1.71B | -3.50B | -3.25B | 2.51B | Financing Cash Flow |
| 0.00 | -6.61B | -5.47B | -4.61B | -3.91B | -2.79B |
Industria de Diseno Textil Technical Analysis
Negative
25.14
Price Trends
26.43
Negative
26.70
Negative
26.52
Negative
Market Momentum
-0.46
Negative
43.03
Neutral
67.23
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IDEXY, the sentiment is Negative. The current price of 25.14 is below the 20-day moving average (MA) of 25.66, below the 50-day MA of 26.43, and below the 200-day MA of 26.52, indicating a bearish trend. The MACD of -0.46 indicates Negative momentum. The RSI at 43.03 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IDEXY.
Industria de Diseno Textil Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $4.78B | 12.14 | 17.56% | ― | 7.71% | 40.01% | |
79 Outperform | $13.91B | 20.85 | 27.57% | 1.43% | 5.23% | 24.63% | |
74 Outperform | $156.48B | 24.80 | 31.07% | 2.31% | 6.78% | 8.62% | |
74 Outperform | $3.91B | 7.24 | 47.77% | ― | 15.60% | 71.45% | |
60 Neutral | $5.83B | 273.55 | 7.53% | 0.13% | ― | ― | |
59 Neutral | $12.27B | 11.11 | -0.54% | 3.71% | 1.45% | -20.42% | |
57 Neutral | $958.44M | 9.20 | 2.83% | 23.23% | -7.18% | -65.92% |
* Consumer Cyclical Sector Average
Performance Comparison
IDEXY
Industria de Diseno Textil
25.22
0.60
2.44%
ANF
Abercrombie Fitch
76.57
-55.27
-41.92%
KSS
Kohl's
8.47
-18.20
-68.24%
RL
Ralph Lauren
215.68
34.01
18.72%
URBN
Urban Outfitters
51.48
6.60
14.71%
LB
LandBridge Company LLC Class A
69.69
46.80
204.46%
Industria de Diseno Textil Earnings Call Summary
Earnings Call Date: Mar 12, 2025 | % Change Since: -5.35% | Next Earnings Date: Jun 11, 2025
Earnings Call Sentiment Positive
The earnings call presented a robust performance for Inditex in 2024, with record sales growth, net income increase, and significant cash flow generation. The company also highlighted its ongoing global expansion and commitment to sustainability. However, there were concerns about increased inventory levels, a moderate sales growth start to 2025, and FX impacts, particularly in the Americas. Despite these challenges, the positive aspects of the company's performance and strategic initiatives outweigh the lowlights.Highlights
Record Sales Growth
Inditex achieved a sales growth of 7.5% in 2024, reaching €38.6 billion, demonstrating strong demand across all collections.
Increase in Net Income
Net income increased by 9% to €5.9 billion, reflecting strong operational performance.
Significant Free Cash Flow
The company generated significant free cash flow, increasing the net cash position to €11.5 billion.
Dividend Increase
A dividend increase of 9% is proposed for financial year 2024, to €1.68 per share.
Global Expansion
Inditex expanded its global footprint, opening new stores in 47 markets and enhancing its online and physical store integration.
Sustainability Initiatives
73% of textile fibers used are lower-impact fibers, with a goal of 100% by 2030, and significant reductions in greenhouse gas emissions.
Lowlights
Inventory Increase
Inventory levels increased by 12% compared to the previous year, which may indicate overstocking or slower sales in some areas.
Moderate Sales Growth in Early 2025
Store and online sales in constant currency grew only 4% between February 1st and March 10th, 2025, indicating a potential slowdown.
FX Impact on 2025 Revenue
A forecasted minus 1% top line FX impact is expected in 2025, which could affect revenue growth.
Challenges in the Americas
Underlying slowdown in the Americas, particularly due to FX impacts in key markets like Brazil and Mexico.
Company Guidance
In the full year 2024 results presentation for Inditex, several key financial metrics and strategic guidance were discussed. The company reported a 7.5% sales growth, reaching €38.6 billion, with a record EBITDA of €10.7 billion, a 8.9% increase. The net income climbed by 9% to €5.9 billion, leading to a proposed 9% dividend increase to €1.68 per share. Inditex's gross profit rose by 7.6% to €22.3 billion, achieving a gross margin of 57.8%, with an expected stable gross margin of plus or minus 50 basis points in 2025. The company's operating expenses were well-managed, growing 126 basis points below the sales growth rate, resulting in significant operating leverage. The net cash position reached €11.5 billion, with funds from operations hitting a record €7.7 billion. In terms of growth, Inditex experienced a 19% increase in sales on a reported basis since the end of fiscal year 2022, despite having 4% fewer stores, and maintained a gross space growth guidance of 5% for 2024-2026. The company also highlighted the role of its fully integrated store and online model, which contributed to a 4% increase in store and online sales in constant currency from February 1 to March 10, 2025, compared to the same period in the previous year, with a 7% increase in the last commercial week. Inditex continues its strategic focus on enhancing customer experience and sustainability, with a target of using 100% lower-impact textile fibers by 2030 and an ongoing logistics expansion plan with a budget of €900 million for each of the financial years 2024 and 2025. The company's net cash position reached €11.5 billion, and funds from operations, after fixed lease cash payments, hit a record €7.7 billion. Looking ahead to 2025, the company anticipates a 1% top-line FX impact and projects ordinary capital expenditure of around €1.8 billion, focusing on global store base expansion, online platforms, and technology integration. Inditex plans to leverage its diversified portfolio to continue its profitable growth and capitalize on new opportunities in the market. The group remains optimistic about its execution and differentiation strategy, with a focus on product offering, customer experience, sustainability, and talent.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.